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5) Suppose a monopoly has demand given by p = a -b q (technically, this is an inverse demand curve because price is on the

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5) Suppose a monopoly has demand given by p = a -b q (technically, this is an "inverse demand" curve because price is on the left hand side). Derive the elasticity of demand as a function of Q or p. Use the elasticity to calculate marginal revenue. If marginal cost equals c, what is the profit-maximizing output and price? How do they vary with a, b, and c? Explain why that makes sense

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